The Best Stocks to Invest $1,000 in Right Now

Key Points

• Alibaba offers an inexpensive way to invest in AI.

• Amazon has multiple growth opportunities, including AI, robotics, e-commerce, and satellite internet.

• Vertex Pharmaceuticals is a cash cow with new drugs on the market and a promising pipeline.

• 10 stocks we like better than Amazon ›

What if you only had $1,000 to invest in stocks and had to put the money to work today? Which stocks would you buy? That's admittedly not an easy question to answer. I can think of lots of stocks that would be top contenders, and you probably can, too.

However, three stocks stand out as arguably the best stocks to invest $1,000 in right now, in my opinion. Here's why I picked Alibaba Group (NYSE: BABA), Amazon (NASDAQ: AMZN), and Vertex Pharmaceuticals (NASDAQ: VRTX).

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

1. Alibaba Group

Investing at least part of the initial $1,000 in an artificial intelligence (AI) stock is a smart move. Despite impressive advances in AI over the last few years, we're still only in the early innings of this game-changing technology. While several AI stocks are excellent choices right now, I think Alibaba Group has a lot going for it.

For one thing, its share price of around $104 leaves plenty of money to buy other stocks with the $1,000. More importantly, Alibaba's valuation is much more attractive than most AI stocks on the market. The Chinese tech giant's shares trade at roughly 11 times forward earnings.

If Alibaba weren't based in China, I suspect the stock would sport a significantly higher earnings multiple. But while the uncertainty related to what the Chinese government might do next is an impediment, it's not a show-stopper for investing in Alibaba. China wants to be a leader in AI. The cloud services offered by Alibaba are critical for the country to keep up with the West.

Alibaba isn't just a leading cloud provider, though. The company is also an e-commerce juggernaut and a top player in digital entertainment in Asia. I predict this stock will be a big winner over the next decade thanks to its multiple growth opportunities.

2. Amazon

Amazon isn't the bargain that Alibaba is. But the stock offers a great way to invest in several growth markets in one fell swoop for only $222 or so for one share.

AI tops the list. Amazon Web Services (AWS) commands the largest market share among cloud service providers. It stands to benefit tremendously as organizations shift their IT spending to the cloud to harness the power of AI.

Amazon is also deploying AI internally in several ways that are driving higher profitability. The company's recommendations for online shoppers are better as a result of AI. Amazon's logistics operations are more efficient as a result of AI-powered robots. I wouldn't be surprised if selling robots to consumers becomes a huge business for the company in the future.

But AI is just one of Amazon's growth drivers. The company still has plenty of room to further expand in the e-commerce market. Just as it's done in the past, Amazon also continues to eye new opportunities -- for example, recently launching its first Project Kuiper satellites to pave the way to begin offering satellite internet services around the world later this year.

3. Vertex Pharmaceuticals

Buying one share each of Alibaba and Amazon would leave you roughly $674 left from your initial $1,000. That's more than enough to initiate a position in Vertex Pharmaceuticals, with its share price hovering around $474.

Vertex is a cash cow, thanks to its virtual monopoly in treating the underlying cause of cystic fibrosis (CF). The big biotech company has a new drug on the market, Alyftrek, that's likely to become its most successful CF therapy yet.

I'm also highly optimistic about the prospects for another new drug in Vertex's lineup. The company won U.S. approval in January 2025 for Journavx in alleviating moderate to severe pain. The most important thing to know about Journavx is that it isn't an opioid. I expect it will quickly become a blockbuster for Vertex as physicians and patients flock to an effective pain therapy that isn't addictive.

More winners could be on the way. Vertex's pipeline features late-stage programs targeting APOL1-mediated kidney disease (AMKD), IgA nephropathy, and type 1 diabetes. Each of these indications represents a patient population larger than CF.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Amazon and Vertex Pharmaceuticals. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.